Employment is up in Ireland. Especially in the industrial sector. However, with high employment comes high turnover. Companies are hiring and turning over staff faster than ever because opportunities are everywhere. And the grass always seems a little bit greener.
So why are your staff leaving and what can you do about it? Let’s take a look at some of the most common reasons your employee turnover is so high.
Wages are stagnated
Despite more jobs becoming available and employment opportunities going from strength to strength, wages aren’t following suit. People are tired of run-of-the-mill remuneration, especially when they can look elsewhere and generate interest in a heartbeat.
The grass is greener
For most blue-collar workers, a few pounds here or there can make the world of difference to their livelihood. So instead of grinding it out in a production facility, they might pop over the road to Burger King where the labour is less intensive and they can earn a few extra quid.
Workers feel undervalued
Globalization and advances in technology are causing wages to stagnate for certain types of labour. Because highly skilled workers are less important. Those with college degrees are finding it hard to be paid the amount they believe they are worth, which means they are willing to move on at the drop of a hat.
So, what can you do to manage the risk of staff leaving?
Here are some suggestions for handling high turnover:
- Focus on company culture. If you can truly understand what your employees want out of their career, and structure their remuneration and benefits accordingly, you will stand out from other companies in the industry. Think about it – people are giving you at least one-third of their day when they commit to a working for you. Why should they stick around if you are not giving them any reason to do so?
- Know how to fill demand when you need to. For most industrial companies the demand for staff fluctuates. A big order may come in, a machine may break down, or the city could get snowed in, and all of a sudden you need to ramp up your numbers. Building relationships with staffing agencies who have a pool of qualified talent and can fill the space during these times is a critical part of handling these fluctuations and minimising downtime.
- Place the right people in the right job. Filling a gap with the first person who sends you their resume could be a recipe for disaster. As stressful as it can be when you need to get a production batch back up and running, you also need to make appropriate business decisions. Otherwise, problems will create new problems. Do this by proactively managing relationships with staffing agencies and skilled workers prior to the time when you need their help. That way, when the time comes that you need to put out a “fire” you will have a group of skilled individuals to go to.
Staff will leave, but you can be ready
Staff turnover is inevitable in the current employment landscape in Ireland. But you can take adequate steps to ensure that you mitigate the risks as much as possible.
Be proactive with your recruitment, establish relationships with staffing agencies, and build a company culture that understands the career objectives of each individual.
All-in-all, be informed and prepared. Employers that are aware of the challenges and risks in the Irish job market are more likely to handle staff leaving when it is least expected.
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John Twomey - Service Delivery Manager at Flexsource Recruitment.